Five Things to Look for in Your Accounting Firm
First, know what you’re looking for. Do you know what the difference is between a CPA, bookkeeper, and an accounting firm? An accountant prepares a company’s financial documents, ensures tax compliance, and in some cases provides financial advice to business owners.
For example, One 8 Solutions takes a holistic approach to accounting and bookkeeping services by providing client accounting services, (CAS). This new spin on outsourced accounting includes not only bookkeeping and accounting services but also payroll, financial statement preparation, cash flow management, transaction processing, controllership, business advisory, and virtual CFO services. CAS enables us to formulate a plan to help your business achieve accurate results in an efficient manner.
Similarly, hiring a bookkeeper typically records financial transactions and reconciles bank and credit card balances. They essentially provide transactional and not advisory services although there are good ones that have expanded their area of expertise. On the flip side, a CPA is a certified accountant and based on their specialization, can work as accountants, auditors, tax consultants, and financial advisors. An accounting firm can provide all accounting services under one roof, including providing experienced bookkeepers and CPAs based on your specific needs.
For the sake of this article, let’s say you’ve decided to hire an accountant. The main goal is to hire someone who is going to take care of your business and make sure everything is in order to set you up for success. You also want someone who will be available when you need them and answer questions if there are any issues.
Here are 5 things to look for when hiring an accounting firm:
1. Capability – It’s imperative that the accountant has been working in the industry for a while and has the capability and experience required to handle all your needs. This can include taxes, payroll and financial statements. Find out what their experience is like with the IRS to avoid any surprises. They’ll know what steps to take if they encounter something they haven’t seen before, which could save you a lot of time and money.
According to a recent article in Business.org, accountants can serve as a kind of financial advisor by providing many complex financial services such as:
- Inventory management
- Cash flow management
- Identify potential growth areas
- Prepare financial reports
- Ensure tax compliance
- Calculate tax deductions
2. Availability – If you are looking for an accountant that is always available, that’s great! But make sure they are willing to work around your schedule as well. If they aren’t flexible with their hours or don’t have availability when you need them, then it might not be worth it for you to hire them for your business needs.
3. Responsiveness – Make sure the accounting firm responds quickly when you call or email them with questions or concerns about tax returns or other financial matters. You want an accounting firm that can respond quickly so there are no delays in getting back to you with answers or solutions if needed.
4. Communication- Like responsiveness, working with a firm that keeps the lines of communication open is critical. According to a recent article in Financial Cents, business owners are flooded with content that helps them improve business practices every minute. It’s key that your chosen accounting firm is in the know about what is happening in the industry to help discern the influx of information and guide you through challenges and risks you may be facing.
5. Service Plan- Find out what the accountant’s fee structure is. Some charge fees for accomplished services, such as financial statements and payroll. Others charge a monthly fee for ongoing support. If hiring a full-time accountant is not in your budget, compare fees between outsourced accounting firms which is a one-stop shop for all your accounting needs without the overhead for hiring a full-time accountant.
The Net-Net
If you’re in the process of hiring an accounting firm, or simply assessing the one you already have, these five things can help you make a smart decision. They may not cover every angle, but they’ll give you a good place to start. Doing your due diligence and being selective about your accounting firm can mean the difference between your business’s success or failure. Ultimately, look for an accounting firm that understands the needs of your specific business, so you can leave the number crunching in their capable hands.
Contact Us
If your company would like to work with an accounting firm that not only checks all the boxes outlined above but also delivers accurate results in an efficient manner, we invite you to learn more by scheduling your initial complimentary Zoom consultation today.
